Real Estate Regulation and Development Act, 2016
The most awaited legislation namely Real Estate Regulation and Development Act, 2016 was passed and all the provisions of the act has come in force with effect from 1st May 2017. Thus the Home buyers who were suffering with the Builders having issues of Possession, Handover of the property to home buyers and the entire issues pertaining to the Real estate has been issued and regulated under this Act. The act aims to protect the Home Buyers from defrauding Builders/Developers by bringing in the transparency, accountability and regulation of the Real estate Sector in the country. this act also provides the Home Buyers various rights and reliefs to protect themselves from the High Handed acts of the builders, which was much awaited by the large sector of Home buyers since long time.
BENEFITS TO HOME BUYERS UNDER RERA:
– Under this act each and every project has to be registered with RERA and it gives confidence to the customers, and they can cross check with the project and details of the project uploaded in the webpage of RERA, so that misleading customer will not be possible by any promoter/developer.
– Deposit of money in escrow account will make it sure to the customer that the money is safe and he will be paying only on the stage wise completion of the project. So the invested amount will be safe, as there cannot be deviation of money apart from the project for which it is kept, money has to be utilized only for the said project and not for any other project.
– The authority may on receipt of a complaint or on recommendation of a committee take action and revoke the registration of the project if there is wilful default of promoter/developer, willfully involved in unfair practices, willfully makes fraudulent practices, willfully falsely represents the grade/standard of project, willfully makes false and misleading representation, willfully makes advertisement to mislead.
– Upon revocation of registration the authority shall debar the project, promoter/developer from accessing the website, specify the names of promoter/developer in the defaulters list in the website, this gives caution to the other customers/investors about the project and promoter/developer. In case of revocation by the authority the appropriate govt shall take steps for the development work to be carried out either by the association or by the local authority as it deems fit.
– If promoter fails to give or complete possession as per the agreed terms of agreement then he shall be liable for compensation with interest at such prescribed rate of interest.
– The promoter shall be responsible to get the completion / occupancy certificate under the act. Otherwise the project will be incomplete.
– Each of the project registered with the authority shall be updated with all the documents and stage wise completion of the project. This gives customers a good support to verify the credibility of the project.
– The promoter shall not take advance amount on the project without registration of the sale agreement. Once the sale agreement is done cancellation of agreement can be done only in accordance with the agreement entered between promoter and allottee.
– If any person makes an investment on the basis of the advertisement or false statement and suffers any loss, then the investment shall be returned with interest and compensated.
RIGHTS AND DUTIES OF HOME BUYERS/ALLOTTEE
- The allottee shall be entitled to obtain information relating to sanctioned plans, lay out plans, along with other specifications as approved by competent authority & such other information as provided in the act, rules & regulations made there under or under agreement of sale signed with promoter.
- The allottee shall be entitled to know stage wise time schedule of completion of the project, including provisions for water, sanitation, electricity & other amenities & services as agreed to b/w promoter & allotte in accordance with terms & conditions of agreement for sale.
- The allottee shall be entitled to claim possession of apartment, plot or building as the case may be, & the association of allottes shall be entitled to claim possession of the common areas, as per declaration given by the promoter under sec.4[c]
- Allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed & compensation in the manner as may be provided under this act, from the promoter, if promoter fails to comply or is unable to give possession of apartment, plot or building as the case may be, in accordance with terms of agreement for sale or due to discontinuance of his business as a developer under the provisions of this act or rules or regulations made thereunder.
- The allottee shall be entitled to have necessary documents & plans, including that of common areas, after handing over the physical possession of apartment or plot or building, as the case may be, by promoter
- Every allottee who has entered into an agreement for sale to take an apartment, plot or building as the case may be, under sec 13 shall be responsible to make necessary payments in the manner & within time as specified in the said agreement for sale & shall pay at the proper time & place, the share of registration charges, municipal taxes, water & electricity charges, maintenance charges, ground rent & other charges if any.
- The allottee shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-sec.6
- The obligations of allottee under sub-sec.6 & the liability towards interest under sub-sec may be reduced when mutually agreed to between the promoter & such allottee.
- Every allottee of the apartment, plot or building as the case may be shall participate towards the formation of an association or society or co-operative society, or a federation of the same.
- Every allottee shall take physical possession of the apartment, plot or building as the case may be within a period of two months of the occupancy certificate issued for the apartment, plot or building as the case may be
- Every allottee shall participate towards registration of the conveyance deed of this apartment, plot or building as the case may be provided under sub-sec of sec 17 of this act.